<h1>Bond-rating firms to overhaul fee collection</h1>

The three major bond-rating firms are set to overhaul the way they collect fees as part of a settlement with New York Attorney General Andrew Cuomo that could be announced this week, according to a news report. An agreement with Fitch Ratings Ltd., Moody’s Investors Service and Standard & Poor’s, all of New York, would collect payments both for rating deals and their preliminary work review loans and bond structures, even when firms aren’t selected to provide ratings, according to the report. The aim is to remove some of the power investment banks have over selecting which rating firms get paid to rate deals. The plan still must receive final agreement by Mr. Cuomo’s office and the rating firms. Fees charged by rating firms wouldn’t be governed by the agreement. Bond issuers would still have a say over which rating firms published the final rating and which ones could oversee loans. Criticism has been made of rating firms because they are paid by the entities that they rate. The Securities and Exchange Commission plans to make credit-rating-agency proposals in the coming weeks.